South Africa Inflation Rises to 4-Month High

South Africa’s annual inflation rate rose to 3% in June 2025, the highest in four months, from 2.8% in each of the previous two months. This was driven by higher prices for food and non-alcoholic beverages (5.1% vs 4.8% in May), alcoholic beverages and tobacco (4.4% vs 4.3%), health (4.6% vs 4.4%), information and communication (1.1% vs 1.0%), recreation, sport and culture (2.0% vs 1.7%), restaurants and accommodation services (2.0% vs 1.8%), and personal care and miscellaneous services (1.8% vs 1.7%). On the other hand, price growth slowed for housing and utilities (4.4% vs 4.5%) and furnishings, household equipment and maintenance (1.1% vs 2%). Transport costs also continued to fall but at a softer pace (-3.3% vs -4.8%). On a monthly basis, the CPI increased 0.3%, following a 0.2% rise in May. Meanwhile, the annual core inflation rate edged down to 2.9% in June, the lowest since April 2021, from 3% in the prior month.